SF Express’ Prepaid Card Dilemma: The Hidden Profit Behind Bonus Credits

SF Express’ “New Express Card” offers a 4% bonus on top-up, yet many users report that bonus credits remain unused for long periods. Complex usage rules—such as a 9:1 ratio between principal and bonus, exclusions for specific services, and restrictions when balances are insufficient—make bonus credits hard to redeem.

Experts note this strategy stems from SF’s margin pressure in the ongoing price war: by restricting bonus use, the company locks in dormant funds, reducing churn risk. SF’s gross margin for the first three quarters stood at 13%, with revenue per parcel down to 13.47 RMB. Dormant prepaid funds may account for 8%-15% of total top-ups.

With a massive user base and ongoing profitability challenges, SF’s prepaid card approach acts as an “invisible cash flow tool,” though it leads to consumer frustration and gray-market reselling. In the capital market, SF shares have fallen around two-thirds from the 2021 peak, currently trading at 38.49 RMB, while management pursues growth through employee incentives and operational optimization.